ABSTRACT

The study examined taxation of cryptocurrency; a review of tax officials’ perception, The specific objectives of the study were to identify and analyse the legal and regulatory barriers that tax officials encounter in the taxation of cryptocurrencies, to evaluate the adequacy of current tax laws and regulations regarding cryptocurrencies, and to assess the perceived need for international cooperation in cryptocurrency taxation. To this end, the descriptive survey research design was used for this study The population of this study consists of tax officials of Federal Inland Revenue Service, Benin City, Edo State, Nigeria. Questionnaire was distributed to 102 respondents in Benin City and their responses were analysed using the regression method. The findings revealed that there is a significant perceived challenge faced by tax officials and policy makers in the taxation of cryptocurrencies in Nigeria, that there is a current tax laws and regulations may not be adequate for addressing the challenges posed by cryptocurrency taxation, and that there is a significant perceived need for international cooperation in the taxation of cryptocurrencies among tax officials and policy makers. The study concluded that tax officials encounter significant challenges in taxing cryptocurrencies, including difficulties in accurately valuing cryptocurrencies, ensuring taxpayer compliance, and tracking cryptocurrency transactions, and therefore recommended, among others, that the government should develop clear regulations and guidelines for the taxation of cryptocurrencies.